Concept and scope of application of the direct estimation method
Regulations: Articles 16.2 a) and 30.1 Law IRPF
Direct estimation is the general method for determining the amount of the different components of the personal income tax base, which obviously include those derived from the exercise of economic activities. This method is based on the declarations submitted by the taxpayer, as well as on the data recorded in the accounting books and records that he is required to keep, verified by the tax authorities.
When it comes to determining the performance of economic activities in the IRPF the direct estimation method admits two modalities : normal and simplified.